Renters' Rights Act and Rent Increases

What did the Renters' Rights Act change?

The Renters' Rights Act 2024 abolished fixed-term assured shorthold tenancies (ASTs). All private residential tenancies in England that were ASTs have converted to periodic assured tenancies — tenancies with no fixed end date that continue on a rolling basis until ended by the landlord or the tenant in accordance with the Act.

This matters for rent increases because the mechanism for increasing rent on a periodic tenancy — the Section 13 process — is now the standard route for all private residential landlords in England.

How can landlords increase rent under the new rules?

Under the Renters' Rights Act, rent on a periodic assured tenancy can only be increased using the Section 13 notice (Form 4A) process. Landlords cannot:

• Include rent review clauses in a tenancy agreement that automatically increase rent
• Increase rent by verbal agreement without serving a formal notice
• Serve a Section 13 notice more than once in any 52-week period

The Section 13 process requires the landlord to serve Form 4A with at least two months' notice, proposing a new rent from a specific date. The proposed rent cannot exceed market rent — the open-market rent for the property.

What is "market rent" under the Act?

Market rent is the rent at which the property could reasonably be expected to be let if it were vacant and offered on the open market. It is assessed by reference to comparable properties — similar homes in the same area that are currently or recently let.

The concept of market rent is central to the tribunal process. When a tenant challenges a proposed increase, the First-tier Tribunal determines market rent independently using comparable evidence. It is not bound by what the landlord proposes. See our guide to what market rent means in practice.

What rights does a tenant have when a Section 13 notice is served?

When a landlord serves a Section 13 notice, the tenant has three options:

1. Accept the increase — do nothing before the effective date, and the new rent takes effect automatically
2. Negotiate — speak with the landlord about a different figure (any agreed change must be documented)
3. Refer the notice to the First-tier Tribunal — the tenant can refer the notice before the effective date, and the tribunal will determine what market rent is

There is no application fee for tenants to refer a Section 13 notice to the tribunal. The process is intended to be accessible without legal representation, though many tenants choose to seek advice before applying.

Can the tribunal set a rent lower than the proposed increase?

Yes — and it can also set a rent lower than the current rent if it concludes that the current rent is above market rent. The tribunal is not limited to choosing between the current rent and the proposed increase. It determines market rent from the evidence before it.

This means that a landlord who proposes an above-market rent and a tenant who refers it to tribunal both take some risk. The safest approach for both sides is to establish what market rent actually is before the process begins.

What evidence does the tribunal use?

The tribunal uses comparable rental evidence — details of similar properties let in the same area, with their rents, distances, and attributes. Either party can submit evidence. A professionally reviewed evidence document — like a Tribunal Evidence Pack — carries more weight than unsubstantiated assertions about what properties are achieving.

For a transparent explanation of how Rent Report's market rent evidence is produced, see how Rent Report works →